SAWT BEIRUT INTERNATIONAL

| 29 November 2022, Tuesday |

U.S. inspections of China corporate audits at ‘very early stage,’ PwC says

U.S. regulatory inspections of audits of Chinese businesses listed in the United States have started, but it may be months before the results are revealed, according to PwC Global Chairman Bob Moritz.

In order to help settle a disagreement that threatened to exclude more than 200 Chinese companies from U.S. exchanges, China and the U.S. reached a deal in August allowing U.S. regulators to check China-based accounting firms that audit New York-listed companies for the first time.

“We are in the middle of the inspection process. We are in the very early stages of that,” Moritz told Reuters.

PwC’s Chinese customers include e-commerce giant Alibaba Group.

“We’ve got a number of months to go yet before the conclusions are reached. We are continuing to share the information that is allowable,” Moritz said.

He confirmed record global revenues for PwC of $50.3 billion for the year ended June 30, up 13.4% on the prior period.

 

During its last fiscal year, the “Big Four” auditor pulled out of Russia following the country’s Feb. 24 invasion of Ukraine, while its global headcount rose by more than 32,000 to 328,000, as a four-year, $12 billion programme to hire 100,000 people kicked off.

Moritz expects “significant” hiring in the current fiscal year to continue as business rebounds from the COVID-19 pandemic.

PwC has yet to set out any mandatory minimum number of days for working in the office, though hybrid working was here to stay, he said.

“What we are expecting is that when they do come in, there is a purpose for coming in. It’s making sure the other people are there as well,” Moritz said.

Rival EY is asking partners if they back splitting audit and consulting into two companies.

“We have been very clear that our current construct and organisational model is appropriate for the stakeholders we serve … and we do not see any need for change,” Moritz said.

    Source:
  • Reuters